In 1978, I was admitted to Harbin Institute of Technology

Chapter 260 Three hundred million US dollars, two hundred million in profit, why care about R&D costs!
"If the price is lowered too much, the other party probably won't agree."

"I'm worried," said the shaman.

With less than 100 million yuan allocated to purchasing tanks, how many tanks can be equipped?

The Iraqi army's main combat equipment is Soviet-style, and it also adopts the Soviet-style three-three system: a tank battalion has three tank companies, each company has three platoons, and each platoon has three tanks; the company commander and deputy company commander each have one tank, and each company has 11 tanks; the battalion commander and deputy battalion commander each have one tank, and the entire battalion is equipped with 35 tanks.

"They'll agree!"

"Izak stood on the steps and said, his face full of confidence."

Abdullah frowned as he looked at him, not understanding where his confidence came from.

"After China's reform and opening up, it needed to import advanced production technologies and equipment from abroad, and was extremely short of foreign exchange! In order to obtain foreign exchange, many of their exported products were sold at prices lower than those sold domestically..."

It must be said that during his time in Hong Kong, Yitzhak did a good job of intelligence work.

"Furthermore, Pakistan is planning to collaborate with Harbin Institute of Technology (HIT) on the technological development of this tank. In reality, they will provide the funding, HIT will assist with the research, and then help them build the production line... However, the two sides still have disagreements and have not yet signed a tank cooperation contract..."

······
"6 dollars per rocket? And the launch system needs to be fully equipped with rockets?"

When Xie Wei heard Yitzhak's new demands, he was secretly delighted, but his face was full of trouble.

"Yes! This is the minimum condition we can accept. If it exceeds this price, then we really can only apologize."

Yitzhak stated this with a resolute expression.

At this moment, General Abdullah sat to the side, pretending to drink tea, but his heart was in his throat, fearing that the other party would find the price too low and not be able to accept it.

Especially when she caught a glimpse of Xie Wei and the school leaders with their troubled expressions out of the corner of her eye, she became even more worried.

"Based on your quote, the rockets for the launch system must be reduced to $60,000 each. We'll purchase 36 launch systems, each equipped with five times the ammunition. Aside from that, we'll also order a batch of tanks. The entire contract won't exceed $300 million!"

Yitzhak didn't give Shewe a chance to object.

They had a thorough understanding of the school's tank project and knew very well that the tank currently had no orders and even lacked research and development funding.

Xie Wei quickly weighed the costs in his mind: 36 sets of rocket artillery launch systems cost over 100 million US dollars; the price of a single rocket was 60,000 US dollars, and only the price of the 1440 reserve rockets was considered, which would only amount to 86.4 million US dollars. However, in reality, 1728 rockets needed to be delivered, and the actual price of a single rocket was only 50,000 US dollars.

The total contract value for rocket artillery and rocket launchers is $2.044 million, which means that $9560 million of that price will be used to purchase the WZ-122 modified tank that is under development.

The other party clearly wanted to negotiate a package deal.

After Xie Wei quickly calculated the various unit prices in his mind,
"The price is just too low!"

Xie Wei frowned.

Who the hell said these rich bastards can't do math?
The rockets that appear to cost $60,000 each are actually priced at $50,000 each, which is only about 75,000 RMB, just three times the cost price.

What happened to the promised 10x profit?

"We only need to equip one battalion with tanks, plus 5 spare tanks, for a total of 40. If, after testing, their performance is found to be advanced, we will place a large-scale order..."

Yitzhak used subsequent orders as an excuse.

$3 million, which is almost one-tenth of China's total foreign exchange reserves, is enough to force the other side to make many concessions.

"We need to report to our superiors. If they agree, we can accept it."

Xie Wei thought for a moment, then pretended to be hesitant and said...

If it weren't for the need to demonstrate the combat capabilities of rocket artillery on the battlefield, he wouldn't have been willing to sell it for only two or three times the profit.

However, the price offered by the other party brought the unit price of each WZ-122 tank to $239 million. As long as it performs well on the battlefield, there will definitely be no shortage of subsequent orders.

Moreover, the development of this tank technology can be carried out in cooperation with Pakistan.

As for whether the profits from sold tank orders are included?

How can it be!

The two sides haven't signed a formal contract yet. General Ahmed and his men arrived at the school earlier and added some conditions. They not only wanted the school to give their international students better treatment, but also demanded that all majors at the school be open to their international students.

After Xie Wei firmly disagreed, these guys returned to the capital without signing a contract, and now it's unknown whether they're visiting other factories or doing something else.

They knew that China was in dire need of foreign exchange, and since they themselves didn't have much capital, they naturally wanted to get more in order to control Harbin Institute of Technology.

It must be said that the school had no choice but to accept Yitzhak's proposal.

Each tank costs $239 million. Compared to the large-scale export of the Type 69 tank, which costs $500,000 each, a WZ-122 modified tank costs almost five times the price of the Type 69 tank.

······
"Xie Wei, the launch system is much more expensive than expected, but the rockets are consumables, and the unit price per rocket has been reduced to only $5. Will this affect future exports?"

In the evening, the school leaders gathered again for a meeting to discuss the matter.

At the current price, it's definitely worth selling, and the profit margin is quite high.

However, the impact on subsequent orders needs to be considered.

"will not."

Xie Wei shook his head, "As expected, each launch system costs $240 million, which actually includes the price of the rockets..."

"..."

Upon hearing this, everyone's expressions became complicated.

Abdullah and his accomplices thought they had gotten a great deal, but in reality...

"Furthermore, the export price is now set, and all future exports must adhere to the current price. If the performance is improved, the raw material costs rise, or even the workers' wages increase, the price will definitely have to be raised."

Xie Wei paused here, observing everyone's reactions, licked his lips, and continued, "Actually, the fact that they ultimately gave us a battalion of tanks was unexpected and extremely beneficial to the entire project. If the Pakistanis had known, would they still have been so calmly dragging their feet!"

Xie Wei had originally planned to stall for time as Ahmed and his group were dragging their feet on signing the contract in an attempt to force the school to make concessions.

The funding issue for tank development became a major problem.

As the fighter jet project progresses, it requires a large number of experiments. Full-size models have already been manufactured, and preparations are underway to continue wind tunnel testing, which will require even greater funding.

"Should I find an opportunity to tell them?"

Principal Li smiled maliciously.

“They know that General Abdullah has been at the school for a few days… Perhaps he will return to the school again in the next day or two to urge us to sign the contract.”

Xie Wei said calmly.

"The higher authorities have given the school autonomy. A $3 million package sale is no problem at all, except for the delivery period..."

Xu Mingsheng, who was almost invisible, reminded Xie Wei, "Deliver as quickly as possible... The launch vehicles and rockets can be produced by our subordinate units of the Seventh Ministry of Machinery Industry. There's no need to adjust the production line. Ideally, we should deliver six sets and matching ammunition to them within six months, and complete the remaining deliveries within a year... As for the tanks, once we have sufficient funding, we should try to complete the prototype manufacturing within a year and a half, and begin deliveries to them in two and a half years..."

Xie Wei didn't want to delay the delivery date.

Although the Iran-Iraq War lasted for eight years, the intensity of the war decreased after the initial high level of conflict and heavy losses of equipment on both sides. Next May, Iraq will purchase 2800 Type 69-II tanks from China to make up for the losses incurred during the war.

If the tanks provided to the school cannot be delivered quickly enough so that the Iraqi army can experience their formidable firepower in actual combat, then this may be a one-off deal.

It could even affect subsequent orders.

"The relevant technologies for tanks are still under development."

Xu Mingsheng reminded Xie Wei.

"The bottom-mounted image-stabilized fire control system was something that General Manager Zhu had been working on for a long time back in 201, and the university has also made some breakthroughs in this area. It has now entered the prototype manufacturing stage..."

Xie Wei provided Boss Zhu with a fairly complete design plan.

Mr. Zhu had been researching this for a while, but due to a lack of funding, it was mainly theoretical research, and he created his own models.

Upon arriving at the school, with ample funding, they achieved considerable results in a very short time.

Xie Wei also proposed a solution using a welded turret and composite armor.

The only problem is the 780-horsepower engine.

With sufficient funding and manpower from the school, this issue can be completely resolved within a year and a half.

The 12150L engine, which was designed for the WZ-122 tank project, began to use turbocharging technology in the early 70s, and the first prototype was manufactured in 74. However, due to the fate of the WZ-122 tank project and problems such as insufficient funding, progress was slow.

After the school handed over the prototype vehicle, the powertrain engineering team worked on solving this problem.

Otherwise, even with sufficient funding, Xie Wei wouldn't have been able to propose completing the prototype manufacturing in just one and a half years.

"In that case, let's discuss the contract details with them. We must make them guarantee that the initial funding will be no less than $1 million!"

Li Rui thought for a moment and then spoke.

"No need for installment payments; the entire $3 million will be received after the contract is signed!"

To Xie Wei's surprise, after agreeing to the price and specifying a delivery date, Abdullah readily agreed, much to Xie Wei's astonishment.

"The rocket launchers must all be delivered within 7 months! The tanks should ideally be delivered in the first batch for training purposes within 12 months!"

"General, we can only do our best."

Xie Wei knew the other party was anxious.

However, the prototype vehicle in the workshop is still just a shell; a more powerful engine has not yet been developed, a stabilized fire control system has not been installed, and new armor has not been welded on.

"It's not just about trying your best, it's a must!"

Abdullah said, leaving no room for refusal.

The reason Abdullah agreed to pay all the funds without receiving any products was not only because he was afraid that Harbin Institute of Technology would renege on its promise. After all, they had played a word game, reducing the unit price of the rocket to $50,000. The price of one Scud-A rocket could almost buy five rockets.

The key is that the president has to see it!
With the delivery time being too long, General Abdullah will not only be out of favor with the president, but will also face enormous pressure.

"Within four months, we strive to deliver six launch systems and their accompanying ammunition!"

Xie Wei calculated that there are currently three prototype vehicles in production. With the stimulus of $300 million in foreign exchange, the units under the Seventh Ministry of Machinery Industry have integrated their relevant production capacity. The production of the Far East Fire Station should be able to complete six sets of finished products within four months.

Once the mass production process is determined, subsequent production will proceed quickly.

However, 1728 rockets is a considerable number.

"Where are the tanks?"

"It will take at least 15 months to deliver the first batch! Of course, we will strive to deliver in a shorter time..."

Xie Wei said through gritted teeth.

If there's no other way, we'll modify and test at the same time. If we have enough funding, we'll produce a few more prototypes, since the chassis won't be significantly altered anyway.

Space was reserved for the engine, so a 580-horsepower engine was installed first, and then the welded composite armor turret was put on for testing, with modifications made as testing progressed.

Test the fire control system, etc., using another prototype vehicle.

Doing it this way will increase costs considerably, but will significantly shorten the time required.

Xie Wei even hoped to complete the delivery of the first batch of prototypes before May next year, so that Saddam Hussein could see this tank, which is cheaper than the T-72 and has more advanced performance, and strive to get an additional order for the school's tanks when Saddam Hussein comes to purchase the Type 69-II tanks next May.

"Then let's sign the contract!"

As a result, with the deliberate efforts of both parties, the contract details were negotiated very quickly, and the contract was finalized in just one day.

After both parties signed, Abdullah stamped the contract directly. All that was left was for Principal Li to take the contract to the relevant higher-level unit for stamping, after which the contract would become effective.

The $2.9 million in foreign exchange was transferred directly by the other party on the third day after the contract was signed.

Such efficiency shocked all the higher-level authorities.

Naturally, they have provided strong support in subsequent production and R&D funding.

It's unclear how Li Rui managed it, but while Abdullah was transferring $290 million back to China, $10 million was also transferred to Hong Kong. Wang Zheng had already gone to Hong Kong beforehand.

"Xie Wei, this will increase the cost several times over!"

When Boss Zhu heard Xie Wei say that the various systems were being tested separately on different prototype vehicles, with modifications made as they were tested, and then all of them were integrated into one prototype vehicle, he couldn't help but remind Xie Wei.

The progress will be much faster.

The tank project was already short of funding.

"The 3000 million yuan R&D funding will go into the dedicated account for the tank project! President Zhu, don't worry about the cost; now we need to get it done as soon as possible!"

After explaining the situation to General Manager Zhu, Xie Wei felt somewhat guilty.

Since Mr. Zhu came to the school, he has been working more than 18 hours a day!
His statement will put even more pressure on the entire tank project team, as many aspects of the complete solution he provided will require testing and improvement.

"We will do our best to try!"

General Manager Zhu also knew that such an opportunity could not be missed. From the day the contract was signed, all the personnel involved in the tank project lived and worked in the design office and workshop. Even the production unit was forced to provide the relevant parts in the shortest possible time.

(End of this chapter)